Exam 17: The Short-Run Tradeoff Between Inflation and Unemployment

If the short-run Phillips curve were stable, which of the following would be unusual?

According to the long-run Phillips curve, in the long run monetary policy influences

Economist A.W. Phillips found a negative correlation between

If the Fed announced a policy to reduce inflation and people found it credible, the short-run Phillips curve would shift

The restrictive monetary policy followed by the Fed in the early 1980s

Suppose that a small economy that produces mostly agricultural goods experiences a year with exceptionally good conditions for growing crops. The good weather would

Between 1993 and 2001 the U.S. economy experienced

The short-run Phillips curve is based on the classical dichotomy.

In the long run, a decrease in the money supply growth rate

If expected inflation falls but actual inflation remains the same, what happens to the unemployment rate? Defend your answer.

An adverse supply shock shifts the short-run Phillips curve right and the short-run aggregate-supply curve left.

An adverse supply shock shifts the short-run Phillips curve to the

The economist A.W. Phillips published a famous article in 1958 in which he showed a

Figure 35-2 Use the pair of diagrams below to answer the following questions. -Refer to Figure 35-2. If the economy starts at C and 1, then in the short run, an increase in the money supply growth rate moves the economy to

According to the Phillips curve, policymakers could reduce both inflation and unemployment by

In his famous article published in an economics journal in 1958, A.W. Phillips

In response to the financial crisis of 2007-2008, policymakers used

Figure 35-6 Use the graph below to answer the following questions. -Refer to Figure 35-6. The money supply growth rate is greatest at

If inflation expectations decline, then the short-run Phillips curve shifts

If taxes rise, then aggregate demand shifts